Effect this measure will have on costs and revenues of state government.

It is uncertain as to the fiscal impact which this legislation would have on the state if implemented. However, it is likely to cause unanticipated delays in the procurement process to provide the assurances required by law. Additionally, should waivers be requested, the posting in the State Register and the 15-day comment period to evaluate the waiver request could severely slow down construction of public buildings.

Fiscal Note Detail

Over-all effect

Effect of Proposal

Fiscal Year

2012Increase/Decrease(use"-")

2013Increase/Decrease(use"-")

Fiscal Year(Upon FullImplementation)

1. Estmated Total Cost

0

0

0

Personal Services

0

0

0

Current Expenses

0

0

0

Repairs and Alterations

0

0

0

Assets

0

0

0

Other

0

0

0

2. Estimated Total Revenues

0

0

0

3. Explanation of above estimates (including long-range effect):

The fiscal impact is unknown at this time, hence, no increase or decrease has been noted.

Memorandum

Aside from the potential delays in public construction projects due to the assurances and possible waiver requests that the Purchasing Division may encounter, another issue relates to the determination that the inclusion of domestic material will increase the cost of the overall project contract by more than 25%. In terms of a multi-million dollar contract, this percentage could be substantial to an agency’s budget.

As written, the Purchasing Division is unsure as to what authority would deem a person as ineligible to receive any contract or subcontract if an intentional violation to this Act was committed. The Purchasing Division does not have direct oversight on subcontractors and the legislation does not dictate the length of this ineligibility. If the penalty is authorized of the Purchasing Director, this language may conflict with the current penalties as noted in §5A-3-32 which provides the authority to suspend up to one year.

Additionally, the division is unaware of any method to prove or audit the requirements as written in the draft legislation; therefore, self-certification would deem to be necessary.